The hearing that could seal the fate of Oceanwide Plaza has been pushed, again, and is now scheduled for July.
Last time, the City of Los Angeles wanted more time. Now, new court documents reveal it is against the proposed $470 million purchaser: Dr. Kali Chaudhuri’s KPC Group and Lendlease.
Theirs is mostly a credit bid. Lendlease was the one-time general contractor for the stalled megadevelopment, and KPC came into the mix via its purchase of another creditor’s claim. The city pleaded for more time in March, basically to see if KPC was up for the job. It needed to assess whether KPC and Lendlease could close the deal, land financing and complete the graffiti-covered towers.
After its due diligence, the city no longer thinks KPC can do that based on the information it currently has. In court documents dated May, the city said it expected the purchaser to provide a concrete plan, which it allegedly has not done. “The proposed purchaser has not provided materials sufficient to close the gap between the city’s stated requirements and the proposed purchaser’s current development plan,” the documents read.
“The sale contemplated … is premised on a development plan that — as presently proposed — is not approvable by the city,” the attorneys wrote.
The decision comes after six meetings with KPC, discussions with Lendlease and a visit to the eyesore in the heart of downtown. Issues and uncertainty surrounding entitlements and financing are the key reasons behind the opposition. Plus, the city wants a detailed phasing plan and a construction schedule, which it says it hasn’t received — not plans on pursuing tower signage, which the potential buyers apparently have provided via verbal presentations.
The latest communications the city had with the purchaser earlier this month included “limited financing information and a proposed construction schedule and development plan for only phase 1 of the project,” per the documents.
That’s not enough for the City of Los Angeles, which concluded that the confirmation should be denied at this point. The hearing isn’t until July, so the city and the buyers still have time to get on the same page. But there is another offer on the table, if they don’t.
A spokesperson for the joint venture said KPC and Lendlease have shared a plan with the city and its many departments. “We continue to meet with the city, respond to questions in good faith and address outstanding issues as part of the ongoing review process,” the spokesperson said.
Representatives for Oceanwide and the city did not immediately respond to a request for comment.
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